Global Manufacturing Activity Improves in October

The J.P. Morgan Global Manufacturing PMI reached a 29-month high in October, posting a score of 53.0. Manufacturing output expanded across consumer, intermediate and investment goods industries with the weakest sector consumer goods. Twenty of 26 countries in the survey saw manufacturing activity increase, however activity in Japan, Greece, Malaysia, Indonesia and Russia contracted last month. New orders rose for the fourth consecutive month resulting in higher levels of optimism among firms. Business sentiment was at a 29-month high. Prices for inputs were higher and supply-chain disruptions continued to cause vendor lead times to lengthen.

“The recovery in the global manufacturing sector continued early this quarter with the level in the PMI for output and new orders among the highest seen over the past two and a half years,” said J.P. Morgan Global Economist Olya Borichevska. “One risk to the goods sector recovery is the sharp increase in new virus cases, which has resulted in activity restrictions across Europe.”